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London metals trader Maguire, in TF Metals Report interview, describes furious battle between paper and physical gold

Section: Daily Dispatches

1:03p ET Sunday, December 22, 2019

Dear Friend of GATA and Gold:

London metals trader Andrew Maguire, interviewed this week by Craig Hemke of the TF Metals Report, makes some pointed observations about the furious battle in the gold market between sellers of paper and buyers of physical:

-- Bullion banks recently persuaded the U.S. Commodity Futures Trading Commission to enable the New York Commodities Exchange to triple the leverage the banks can use to control gold futures prices.

... Dispatch continues below ...


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-- Comex position limits are being exceeded by bullion banks with the exchange's approval, as the banks have been allowed to increase their hypothecations by using "pledged gold" supposedly held in London, outside the exchange's jurisdiction.

-- Maguire recently discussed improprieties and systemic risks in the gold market with the director of the United Kingdom's Financial Conduct Authority, Andrew Bailey, who has just been appointed governor of the Bank of England.

-- Gold market rigging has been supported by prohibitions on major U.S. gold futures traders from trading simultaneously in the cash market in London, even as bullion banks may continue trading in both markets, which will give the banks a huge advantage if U.S. gold futures trading is ever suspended temporarily because of volatility.

-- The "spoofing" of the metals futures markets by bullion bank traders being prosecuted by the U.S. Justice Department is the smallest part of the banks' market rigging.

-- Swiss banks are already "bailing in" their gold and cash depositors, sharply restricting annual gold and cash withdrawals. As of January 1 Germany also is imposing sharp limits on gold withdrawals from banks. These restrictions confirm the banks' unauthorized disposal of depositors' gold.

-- Russia recently purchased a thousand tonnes of gold without making any announcement.

-- Mainstream financial news organizations are refusing to report what is really happening in the gold market.

-- The United States government long ago sold the custodial gold it was holding for Germany and then, to honor the Bundesbank's request for repatriation, had to buy gold to replace it. To recover the gold the U.S. government knocked the gold futures price down so it could fulfill its obligation to Germany without exploding the market.

-- Governments and investors around the world are catching on to the gold price suppression scheme in the futures market and are taking delivery of real metal and making price suppression more difficult.

-- Major investors increasingly are seeking financial hedges without counterparty risk, and the best such hedge is gold vaulted outside the banking system.

-- The gold price suppression scheme's endgame is cash settlement of futures contracts.

Maguire's interview is 54 minutes long and can be heard at the TF Metals Report here:

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

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